“Each individual state has a notably different state of regs, so how one of our brands operates in California is notably different than what they can and can’t do from the product itself.”

The related issues include the product itself, the cannabinoid count, material composition and the packaging itself. Overhold said that the packaging regulations changed two times in 2018, which created a series of disruptions for his portfolio companies.

However, despite the hiccups in the sector, he said that the industry is doing well. He suggested that ongoing banking challenges are at the front of his mind, but he is quite content being an early investor in the sector.

Overholt noted that consumer product goods companies are prepared to ramp up production in new products. “It’s a classic CPG playbook,” he said. The maturation of the industry and the reduction of a stigma around the space will improve the overall acceptance of the sector.

He noted that a lot of the products that are within the sector – like CBD oils and hemp products – don’t have any intoxicating impacts.

Thoughts of Grover Norquist of Americans for Tax Reform

One of the top voices on fiscal policy also joined the panel. Grover Norquist offered his insight based on his significant experience on Washington policy. He said that the move to end prohibition for cannabis is following the path that many other issues have taken.

Norquist noted that risk-taking on the reform side always took a backseat to other issues. He said that the nature of Washington requires a state-based effort to get the Federal government to set national policy.

“I think it will take more than 41 states to end prohibition before we get a national law,” he said.

Norquist noted that risks remain high given the lack of banking regulations and the fact that tax law requires a "21% sales tax" on cannabis sales due to Schedule I rules. Norquist showed optimism that the SAFE Act would pass in the near future.

However, Norquist raised concerns about bipartisanship. He worries that too many politicians will attempt to attach riders to the bill that aim to include pork barrel spending or other showboating attachments.